Co-Operatives (National Uniform Legislation) Act 2015

(1) A distributing co-operative may apply a part of the surplus arising in a year from the business of the co-operative or a part of the reserves of the co‑operative by:

(i) the value of business done by each member with the co‑operative; or

(ii) profits earned by the co-operative on business done by each member with the co-operative; or

(i) the value of business done by each member with the co‑operative; or

(ii) profits earned by the co-operative on business done by each member with the co-operative; or

(c) the issue to members of a limited dividend for shares held by each member.

(2) The amount of a rebate payable to a member under subsection (1)(a) may be applied:

(a) in payment for the issue to the member of bonus shares, with the consent of the member; or

(ii) if the rules of the co-operative authorise the amount of a rebate payable to a member under subsection (1)(a) to be applied as a loan to the co-operative.

(3) The amount of a dividend payable to a member under subsection (1)(c) may be applied:

(a) in payment for the issue to the member of bonus shares, with the consent of the member; or

(ii) if the rules of the co-operative authorise the amount of a dividend payable to a member under subsection (1)(c) to be applied as a loan to the co-operative.

(4) A loan to the co-operative authorised by the rules (as referred to in subsection (2)(b)(ii) or (3)(b)(ii)) is repayable at call and must bear interest at a rate not lower than the rate prescribed by the National Regulations.

limited dividend means a dividend that is not more than the amount prescribed by the National Regulations.